What Is the Difference Between Stock Options,stock Purchase Plans,and Stock

question 45

Essay

What is the difference between stock options,stock purchase plans,and stock awards as given to corporate executives? Why are long-term incentive plans for executives frequently criticized?

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Definitions:

Monthly Interest Rate

It's the interest rate applied each month on loans, savings, or investments, calculated by dividing the annual interest rate by 12.

Probability Of Default

The likelihood that a borrower will be unable to meet its debt obligations.

EOQ

Economic Order Quantity, a formula used to determine the ideal quantity of inventory to minimize total costs related to ordering, receiving, and holding inventory.

Carrying Cost

The total cost of holding inventory, including storage, insurance, taxes, depreciation, and obsolescence, which affects a company's overall profitability.